Revenues from McDonald's all-day breakfast promotion slow

OAK BROOK, Ill., July 27 (UPI) -- Second-quarter revenues announced by McDonald's Corp. indicated a slowing of growth prompted by its all-day breakfast rollout.

Same-store sales in the United States grew 1.8 percent in the quarter, less than analysts' expectation of 3.4 percent. The second-quarter earnings report prompted a 3 percent decline in the company's stock price Tuesday; the decline was at 4.47 percent Wednesday morning.

Despite the decline of momentum, it was the fourth consecutive quarter of growth for the company, which launched its new breakfast promotion in October. It indicated customers remain drawn in by the breakfast and McPick 2 promotions, but are spending less in every visit, perhaps because items on those menus cost less than the regular menu.

A McDonald's statement, released Tuesday, said the breakfast promotion will be reinforced in the fall by adding more choices to the menu.

The company reported a net income of $1.09 billion, or $1.25 per share, on sales of $6.26 billion. Sales at what the company calls its "high growth" international restaurants rose 1.6 percent, led by growth in China and Russia. Its "international lead" segment saw same-store sales up 2.6 percent during the quarter in Britain, Canada and Australia. In its "foundational markets," same-store sales gained 7.7 percent, due to strong performance in Japan.